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The supplement industry is a multibillion dollar juggernaut that isn’t going to slow down soon. The challenges of running a lasting supplement brand are many. The amount of competition in this industry is immense with the larger companies taking out advertorials in nearly every fitness industry magazine. Although the competition might be fierce, having a hit product can launch a supplement company into immortality. The following are just a few things to watch out for when starting a supplement company.
Some of the larger companies have the budgets to send out free samples to thousands of people. As a supplement startup, it is important to get the products in front of the target demographic.
A great way to have a product tried is by going to bodybuilding conferences or expos. Free samples are given out by many major supplement providers; this is the chance to prove the uniqueness of a product.
Another option is through content marketing, which can be one of the best things that can be done for a supplement. Whether it comes in the form of people reviewing products or even just creating a buzz in forums, this can be the form of marketing that can even the playing field with larger companies.
Social media can also be a great way to interact with people who are interested in supplements. Just by answering questions about the product or about fitness in general could encourage a customer to try the product. The main focus of social media is customer engagement while building brand loyalty.
Skimping on Ingredients
There are plenty of supplements that add quite a lot of fillers. The quality of ingredients is extremely important as many of these supplements are scrutinized by people online. While higher quality ingredients might be a bit more expensive, consumers are willing to pay. Certain supplements contain things that can be dangerous in high doses. The lack of supervision by the FDA can make using inferior ingredients dangerous to the users. The companies that have been around for decades specialize in the best ingredients for all of their supplements..
It Is Considered a High-Risk Business
The fact that the supplement industry isn’t tightly regulated leaves it difficult to find payment processors willing to work with the business. Payment processors that specialize in working with high-risk businesses are best as they can protect a supplement company from chargebacks or even people saying the supplement contained false claims.
The high risk and high reward nature of the supplement business can also make it difficult to get a business loan. While there might be loans available, the interest rates won’t be favorable. Banks like to see matching money from the person requesting the loan as this shows personal investment.
Having legal counsel on retainer is essential in nearly any business. In an industry as risky as the supplement industry, legal counsel can help with wording on labels. This lawyer can also go to court for any lawsuits, whether they are legitimate or trumped up. Pick a lawyer who specializes in product liability as having a certain ingredient that isn’t marked on a label can cause huge problems in case of death or injury.
The rewards for creating a successful supplement that becomes popular are great. The profit margins can often be up to 5,000 percent in some cases on a certain product. There are pre-workout supplements on the market that can be made for less than a dollar but sell from $30 to $50. Find a niche in the supplement industry and stick to it, you won’t regret it!